Astana Could Become An International Aviation Leasing Hub
Photo: freepik.com
Participants at a thematic round table at the Astana International Financial Centre (AIFC) proposed turning it into a regional hub for aviation leasing, Orda.kz reports. They say the AIFC’s jurisdiction can provide carriers with everything they need to acquire and operate aircraft.
According to experts, Central Asia and the Caucasus are among the fastest-growing aviation regions in the world, and Kazakhstan plays a special role thanks to its unique geographical location and rapidly developing infrastructure. Among the country’s other advantages, participants highlighted its high flight safety rating. Kazakhstan complies with 82% of the International Civil Aviation Organization’s (ICAO) recommendations, which is significantly above the global average.
In addition, 55–80% of the aircraft fleet in Kazakhstan is operated under leasing arrangements, both operational and financial, which is close to the global level of 60%. Asel Bagisova, head of Aviation Finance Hub, which operates under the AIFC’s jurisdiction, said the leasing model is the most promising and economically viable for the aviation industry. In her view, it makes aircraft more accessible and cost-effective, allowing airlines around the world to expand.
Experts believe the AIFC, drawing on the experience of Ireland and Singapore, can offer residents a favorable legal and regulatory environment for attracting investment.
The AIFC may consider developing its role as a regional leasing hub. Although the key centers of this industry are currently concentrated in Ireland and the United States, the AIFC has the potential to occupy its own niche by offering favourable conditions for expanding operations in the region and complementing the existing international leasing ecosystem.said Jim Bell, a partner at Watson Farley & Williams.
According to the AIFC’s forecast, by 2030 the total fleet of airlines in Central Asia and the Caucasus will double, while the global fleet will grow from 24,700 aircraft to 49,200.
At the end of February, ICAO experts began developing a master plan for Kazakhstan’s aviation sector through 2050. The Ministry of Transport expects the document to help create a long-term, realistic and competitive model for the industry’s development.
Original author: Alexey Afonsky
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